Posted: Saturday, 1 November 2003

Executive Summary

The key goals of a national energy policy should be: to secure stable, long-term energy supplies for Canadians at reasonable prices; to build a much more energy efficient economy and society so as to deal with global warming and air pollution; and, to create good jobs in the energy-producing sector.

The principles of Just Transition must apply in the needed shift of our economy to much higher levels of energy efficiency and reduced carbon emissions.

We must regain the control of our energy resources which were greatly undermined by the FTA and NAFTA. Under these trade agreements, we cannot charge Canadian customers less for our own energy than US customers, and we must proportionately share our energy supplies with US export customers, even in the event of severe shortages. Under NAFTA, natural gas exports to the US have risen dramatically, mainly through short-term licences, even though our domestic supplies are rapidly dwindling, and prices are rising sharply.

The CLC calls on the Government of Canada to re-regulate energy exports through the National Energy Board, and to end blanket approval of short-term exports. Exports should be approved only for volumes which are clearly surplus to Canadian needs over the next twenty-five years.

Higher prices for carbon-based energy sources are needed to promote greater energy efficiency and a shift to renewable sources of energy such as wind, solar power and hydrogen. However, higher taxes on energy to promote these goals should be recycled into energy conservation programs, support for alternative energy developments and income supports for consumers, rather than used to increase general government revenues.

The CLC supports a much stronger federal government role in promoting energy efficiency and the development of alternative energy sources. There is enormous potential for creating good jobs as part of the transition to a more energy efficient and less carbon intensive economy.

The federal government should: expand its direct role in energy research and as a leading-edge user of energy; help industry invest in more energy efficient processes and technologies through direct subsidies or tax reductions; scale back excessive tax subsidies to the coal and primary oil and gas sectors; expand subsidies to alternative energy producers; support higher public investment in public transit and passenger rail; establish revolving retrofitting funds to make the existing building stock much more energy efficient; and, raise energy efficiency standards for vehicles and buildings.

The CLC opposes greater continental integration of electricity markets; supports greater use of surplus electricity within Canada by expanding inter-provincial grids; opposes the inclusion of electricity in the General Agreement on Trade in Services (GATS); and, strongly opposes provincial policies of deregulation and privatization. Electricity generation, transmission and distribution should remain under public control. Public systems can also provide access to the grid for small-scale power producers such as co-generators. Nuclear power and coal-generated power should be phased out.

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